When companies enter into a partnership together to reach a common goal, all of them stand to benefit. Businesses use contracts to specifically outline the duties and responsibilities of everyone involved. If anyone fails to complete their piece of the project according to specification, it can result in financial loss and a consumption of time to correct the problem -- both precious assets to any business. One company here in Texas has accused several of its contractors of a breach of contract for poor workmanship and has filed a lawsuit against them.
GYB Investors hired several other companies to renovate a yacht club they owned. GYB had purchased the club after it was damaged in a hurricane a few years ago. The project took over a year to complete, and involved several different contractors. When everything was finished, GYB claims it found that the workmanship was inadequate. It alleged that the yacht club was unusable in the state it was in.
Disagreements between businesses are all-too-common, despite the financial pitfalls that it can bring. The time and money that a business must expend in pursuit of a resolution to business disputes can irreparably damage a company. When one company is involved in unfair practices, the potential exists for other similar businesses to be harmed by their actions. Two Texas companies have accused a third of this very problem and have filed a lawsuit in response to what they say is a breach of contract.
Acme Iron and Metal -- owned by the CEO of Texas Disposal systems -- has named Republic Services in a lawsuit related to its commercial dumpster services. The owner of Acme claims that Republic has overcharged its clients. This comes after Acme claims they were shut out of a bid for proposals of commercial trash collection by the city of San Angelo. Republic Services is in the stage of final negotiation with the city and is awaiting authorization from the city council.
When business owners have a disagreement, the fallout can be costly for everyone involved, in terms of actual financial hardship and the time spent in attempting to reach a resolution. Contracts are designed to protect all parties that do business together, and they typically require that everyone involved complete their responsibilities. A company may decide to pursue a business litigation lawsuit in the hopes of recouping their lost revenue or expenses if someone interferes with this contract. Here in Texas, a recent lawsuit was filed by one company that alleges that other groups caused the dissolution of a city contract.
A company called Partners Dewatering International had a contract with the Texas city of Rio Hondo for the treatment of liquid waste from restaurants and car washes. It claims that an environmental organization known as the Texas Campaign for the Environment, as well as Liquid Environmental Solutions of Texas, made inflammatory statements against PDI and plotted to damage the company. According to the lawsuit, PDI says that the two organizations worked together to denigrate it.
A construction company is entangled in a lawsuit filed by a business in Harris County. Hooker Development filed a lawsuit in a Texas courtroom against Cavalier Construction claiming breach of contract and fraud. The lawsuit states that Cavalier Construction did not pay its subcontractors even though Hooker Development paid for all of the work that was conducted.
Reportedly, Cavalier Construction agreed to be a contractor for Hooker Development for the construction project of a building. Cavalier Construction allegedly hired a third-party construction team, Corey Construction, to assist with the project by providing services and other materials for the building’s roof. Hooker Development claims it paid Cavalier Construction all of the monies owed and was under the impression that its subcontractors would be paid accordingly.
Three companies have been in the midst of legal disputes. Big-box retailers such as Macy’s, Martha Stewart and Texas-based J.C. Penney are in business litigation over the sale of Martha Stewart products. Macy’s allegedly had exclusive rights to the Martha Stewart brand.
As part of an agreement entered into back in 2006, Macy’s reportedly had exclusive rights to sell Martha Stewart Living bath and kitchen products. In 2011, a former CEO made an attempt to lift sales of Stewart’s products and was able to obtain 17 percent shares for $38.5 million. Macy’s filed a lawsuit against J.C. Penney, claiming that it obstructed the contract it had for Stewart’s products.
Litigation with an insurance company can be caused by a number of factors. These factors that lead up to insurance disputes can often stem from suspected fraud and breach of contract, and may ultimately require a policyholder to file a lawsuit in civil court to have the contract upheld. In one such case, a Texas woman is in a civil dispute with the GEICO auto insurance company following an accident that occurred.
According to reports, a woman was involved in a car accident back in December of last year. At the time of the crash, she was carrying auto insurance through GEICO. The woman claims that she suffered undisclosed injuries in the accident that she had with another party. Reportedly, after the woman filed a claim, the insurance company refused to compensate her according to the obligations outlined in the contract.
Violating a legally binding contract typically causes the other party to suffer from some form of financial challenges. Most commonly, the party who has been wronged faces loss of revenue and out-of-pocket expenses. Another common loss is when another party fails to pay for services and products even after being invoiced. A Texas business is faced with a breach of contract lawsuit for allegedly failing to remit payment to Grand LTD.
According to the lawsuit, Prime 8 Offshore and Grand LTD entered into an agreement involving the exchange of goods and services. In the agreement, the parties agreed that Prime 8 Offshore would purchase services and merchandise from Grand LTD. However, Prime 8 Offshore reportedly failed to make good on its promise to fulfill the account and has an outstanding balance of $118,925.80 due.
A lawsuit has been filed against an insurance company after a conflict. A Texas school district filed the lawsuit, stating that breach of contract and insurance code violation has occurred. Reportedly, the insurance company failed to pay a claim even though it was required to do so under the policy.
Back in 2013, a fertilizer plant explosion occurred which caused an extensive amount of damage to the school buildings and 350 homes. In addition, 15 people lost their lives. Reportedly, there was approximately $53 million in damages to school buildings. According to the lawsuit, the claims adjuster never attempted to compensate the school district in a fair manner. However, the insurance company must do so under the current policy.
Online opportunities for unethical behavior in Texas and around the country sometimes seem to be as limitless as the Internet itself. One pernicious practice has to do with competitive online video games. The StarCraft II maker, Blizzard, has filed a business litigation lawsuit in a federal court, claiming that a group of hackers have manufactured a “hack” program that gives players an advantage by allowing them to cheat.
It appears that the suit is asking the court to issue an injunctive order, stopping the unfair confiscation of the program content and the modifications that permit cheating. The lawsuit alleges that the cheating turns many users away from the game due to the interference with its authenticity and fair competitiveness. It is not clear from published reports whether the actual identity of the hackers is known to Blizzard.
A business dispute can be frustrating for parties involved, especially since litigation can take up a large amount of time. Certain instances can lead to these disputes in Texas, particularly breach of contract. When parties enter into a contract, it’s expected that all of the individuals involved follow through. However, that is not always the case, and failure to adhere to the terms can cause financial distress.
A construction company, Triad Retail Construction, ended up in a dispute with Resort Installation Systems. The companies reportedly entered into an agreement for Resort Installation Systems to provide handrail materials for two projects. However, Resort installation allegedly did not follow through with the agreement, which caused Triad to be delayed on the projects. The delay caused Triad to incur more costs.